Pegasus Resources LLC, a mineral and royalty company based in Fort Worth, announced Dec. 11 it has received a $300 million equity commitment from EnCap Investments L.P. (EnCap). Led by a team of veteran energy executives, Pegasus will focus on acquiring and managing mineral and royalty properties located in the core of the Permian Basin.
The Pegasus management team is led by CEO George M. Young Jr., who has spent more than 35 years in the energy industry, most recently as CEO of Silverback Exploration LLC and president of Collins and Young LLC. Houston-based EnCap also provided capital for Silverback.
Also on the team are President and Chief Operating Officer Will O. Rodgers most recently served as vice president of Collins and Young and vice president of Wolf Exploration LLC. Chief Financial Officer Lynn Frank most recently served as director of finance for Black Stone Minerals LP (NYSE: BSM).
“Our team has spent years working together and has a proven track record of successful collaboration and value creation,” said Young. “Our plan is to leverage our extensive network of energy industry relationships, coupled with EnCap’s financial strength and expertise, to assemble an attractive portfolio of high-return properties during an advantageous point in the price cycle. We have already seen a significant amount of deal flow and look forward to continuing to source, negotiate and close mineral acquisitions.”
Pegasus Vice President of Land Don H. Collins has served as vice president of land for Collins and Young for 12 years. Vice President of Operations Cass H. Rodgers worked as manager of operations for Collins and Young for more than fuve years. Additionally, energy industry veteran Ted Collins Jr. will serve Pegasus as a non-executive advisor.
. “We have worked with members of the Pegasus team for many years,” said David Miller, Co-founder and Managing Partner of EnCap. “They have a proven track record of value creation in the oil and gas business, and we look forward to continuing our successful partnership with them.”
Pegasus has partnered with Tilden Capital, LLC, which has a track record of sourcing and closing mineral and royalty acquisitions across various basins, according to a Pegasas news release.
The Fort Worth office of Kelly Hart & Hallman LLP acted as legal advisors to Pegasus. Thompson & Knight LLP served as legal counsel to EnCap.